Credit Card Interest

[PetrolHead]

I just got told by FNB that they are charging 36% interest on their budget facility. Thats worse than the micro lenders and loan sharks.

Are these guys crazy and is there a way to stop them form blatantly ripping people off?

 

[Weasley]

No thats the real sad part

 

[Bizkit87]

W.T.SA (welcome to South Africa)

Short answer, NO, the banks can even tell the competition commision what to do, and what not to do.....

 

[bwana]

I just got told by FNB that they are charging 36% interest on their budget facility. Thats worse than the micro lenders and loan sharks.

Are these guys crazy and is there a way to stop them form blatantly ripping people off?

Yes - cancel your card.

 

[mjkelly]

Virgin Money Website:

Budget Facility - How Does it Work?

It doesn’t. In South Africa, credit cards have always allowed you to split your credit limit into two amounts. Budget and straight. Did you know the two different limits are charged for at two different rates, and the budget facility (which you would think charges you less) actually charges you more?

I had never even heard of a budget facility until getting a credit card in South Africa...

 

[W@P]

I just got told by FNB that they are charging 36% interest on their budget facility. Thats worse than the micro lenders and loan sharks.

Are these guys crazy and is there a way to stop them form blatantly ripping people off?

Actually they may only ask 5% as per regulations from NCR. They are however allowed to ask an Initiation fee (which gets charged almost everywhere nowadays iirc) and also a Service fee.

So depending on how the fees and costs are setup at said shark or micro lender you would have been better of borrowing from them instead of using a cc.

I know its a little OT and sorry for that.


Anyhow the budget facility does rape one if used.
Does your cc not have a 55 days interest free period ?

 

[Dolby]

Yea - myself and a friend went to Amsterdam and he bought some perume etc on budget. When he said, 'over 6 months budget, please' she just looked at hime blankly and said 'I have no idea what you're talking about'

 

[killadoob]

Credit cards are the devil.

 

[mjkelly]

Credit cards are the devil.

Credit cards can be your greatest friend, IF you stay in credit and use them wisely. The pro's far exceed the cons.

 

[undesign]

Actually they may only ask 5% as per regulations from NCR. They are however allowed to ask an Initiation fee (which gets charged almost everywhere nowadays iirc) and also a Service fee.
/QUOTE]



You mean 5% per month for unsecured loans x 12 = 60%. How is that less than 36% p.a. on a credit card?